Botswana: Living There - Tax Issues

Country Rating »

In Depth

Find Property

Global Statistics

House Prices

Regional Statistics

Home › Africa › Botswana › Living There

Last Updated: Aug 23, 2008

Living There

INDIVIDUAL TAXATION

Resident individuals are taxed on all their income from sources in Botswana. Married couples are assessed and taxed separately.

INCOME TAX

Income of resident individuals is taxed at progressive rates. Taxable income is computed generally as gross income less allowable deductions, which are expenses necessary in producing income.

INCOME TAX
TAXABLE INCOME, BWP (US$)	TAX RATE
Up to 30,000 (US$4,216)	0
30,000 – 60,000 (US$8,433)	5% on band over US$4,216
60,000 – 90,000 (US$12,649)	12.50% on band over US$8,433
90,000 – 120,000 (US$16,865)	18.75% on band over US$12,649
Over 120, 000 (US$16,865)	25% on all value over US$16,865
Source: Global Property Guide

RENTAL INCOME

Rental income is taxed at progressive rates. Any expenses that are unavoidably incurred in producing rental income are deductible. These expenses include interest on loans, improvements, irrecoverable rent, and others.

CAPITAL GAINS

There is no separate capital gains tax in Botswana. Capital gains realized from selling real property is subject to income tax under a special regime. Capital gains is gross sales price less acquisition costs, improvement costs, and transaction costs.

INCOME TAX ON CAPITAL GAINS TAX
TAX BASE BWP (US$)	MARGINAL TAX RATE
Up to 15,000 (US$ 2,108)	0
15,000 – 60,000 (US$ 8,433)	5% on band over US$2,108
60,000 – 90,000 (US$ 12,649)	12.50% on band over US$8,433
90,000 – 120,000 (US$ 16,865)	18.75% on band over US$12,649
Over 120,000 (US$16,865)	25% on all value over US$16,865
Source: Global Property Guide

Residents are exempted from capital gains tax when they sell their principal private residence. This exemption will apply only once in the life time of the taxpayer.

Botswana - more data and information

Lawyers (attorneys) with property law practices in Botswana